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The tax rate tables for all provinces and territories,
which are found on the marginal tax rates
page, have been updated to reflect the reduced personal federal tax rate.

Federal Budget March 2007

The government presented its 2007 budget on
March 19, 2007. The budget documents are available
on the Department of Finance Budget
2007 web page. The Budget was approved in
the House of Commons on March 27, 2007.

Bill
C-52, which was created to implement some of the
provisions of the Budget, is now law. It received Royal Assent on June
22, 2007. The following income tax
changes are included in Bill C-52:

On October 2, 2007, the Department of Finance announced proposed
legislation to implement the remaining Budget 2007 tax measures. These tax measures were included in
Bill
C-28, which received Royal Assent on December 14,
2007.

where the child lives with both parents, may
be claimed by either spouse, with unused
portion transferable to spouse or common-law
partner

In other cases, may be claimed by the parent
who is eligible to claim the equivalent to
spouse credit for the child (or would be
eligible, if that child were the parent's only
child).

spousal amount non-refundable tax credit
increased to same as basic personal amount,
starting in 2007. The credit is reduced for
spousal income greater than zero (previously
greater than $759 in 2007). See tables
of non-refundable tax credits.

"specified educational program"
will now include part time programs of at
least three consecutive weeks duration,
requiring the student to spend not less than
12 hours per month on courses in the
program. Up to $2,500 of educational assistance payments may
be made for each 13-week semester of study.

maximum CESG receivable for a student
remains at $7,200.

meal expense deductibility for long-haul
truckers will be increased from the current
50% to

60% for expenses incurred March 19 to
December 31, 2007 inclusive

65% for 2008, 70% for 2009, 75% for 2010,
and 80% for years after 2010.

weekly passes will qualify for the tax
credit where the taxpayer purchases them for
at least 4 consecutive weeks, and the passes
provide the holder with unlimited use of the
public transit system for a period of 5 to 7
days.

electronic payment cards will qualify for
the tax credit, where

the cost relates to the use of public
transit for at least 32 one-way trips
during an uninterrupted period not
exceeding 31 days, and

that transit usage, and cost of those
trips, are recorded and receipted to the
purchaser by the relevant transit
authority, in sufficient detail as to
allow the Canada Revenue Agency to verify
eligibility for the credit.

lifetime capital gains exemption for
qualified farm property, fishing property, or
small business corporation shares increased from
$500,000 to $750,000 for dispositions occurring on
or after March 19, 2007.

instalment payment threshold for personal
income taxes will be increased from $2,000 to
$3,000 (from $1,200 to $1,800 in Québec)
beginning in 2008